Cost, value and foreign market entry mode: the transaction and the firm

Article Abstract:

A study was conducted to investigate foreign market entry behavior of firms from two perspectives, namely, transaction cost (TC)/internalization and organizational capability (OC). Key differences between the two perspectives have been identified. Foremost of these is the finding that OC-based logic is less restrictive as compared to the TC approach for the latter is driven by the assumption of opportunism, in conjunction with rationality, while the former is centered on rationality and functions independent of the assumption of opportunism. It was also noted that the OC logic can explain the governance choices made under TC-dominated reasoning, and thus, the possibility of employing the two explanations when making decisions for foreign market entry mode. It is still, however, suggested that OC logic be used for such decisions because it is more in tune with modern-day business context.

Foreign Operations Analysis, Foreign investments, Foreign corporations, Business expansion, Foreign business enterprises, Foreign operations (Business)

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Ambiguity and the process of knowledge transfer in strategic alliances

Article Abstract:

The effect of the casually ambiguous characteristic of knowledge in the process of knowledge transfer between members of a strategic alliance was investigated. Using a cross-sectional sample of 147 multinationals and a structural equation process, the simultaneous effects of knowledge ambiguity and its forerunners, namely, tacitness, asset specificity, previous experience, complexity, partner protectiveness, cultural distance and organizational distance on technological knowledge transfer, were examined. Findings emphasize the essential role of knowledge ambiquity a full regulator of tacitness, previous experience, complexity, cultural distance and organizational distance on knowledge transfer.

Management Theory & Techniques, Research, Strategic alliances (Business), Technology transfer

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